2 Organizing for Networked Information Technologies

Transcription

1 2 Organizing for Networked Information Technologies

2 Organizing for Networked Information Technologies 3 Organizing for Networked Information Technologies Process Integration and Transformation Articles Edited by Jan Damsgaard, Jens Hørlück, Pernille Kræmmergaard & Jeremy Rose PITNIT, Aalborg University, 2003

3 4 Organizing for Networked Information Technologies Organizing for Networked Information Technologies Cases in Process Integration and Transformation First Published in 2001 ISBN Copyright The authors Publisher Process Integration and Transformation based on New Networked Information Technologies (PITNIT), Aalborg University Project number , the Danish Research Agency Distribution Aalborg Universitetsforlag Niels Jernes Vej 6b DK-9220 Aalborg Ø Phone: Fax: Homepage: Print J. Tengstedt Cover and layout Morten Rask

4 Table of Content INTRODUCTION...9 BACKGROUND FOR THE RESEARCH PROJECT...11 THE ARTICLES...12 Group A: Articles primarily related to one organization's perspective on parts of the framework...12 Group B: Articles primarily related to the interconnecting of organizations in a network...13 Group C: Articles related to the overall framework...14 ARTICLES, RELATED TO THE PITNIT PROJECT, BUT NOT INCLUDED IN THIS BOOK...14 ACKNOWLEDGMENTS...16 KNOWLEDGE CREATION ON THE INTRANET...17 ABSTRACT...17 INTRODUCTION...17 INTRANET TECHNOLOGY...18 Intranet technology usage...19 KNOWLEDGE CREATION PROCESSES...20 A Model of knowledge creation...20 A MODEL OF INTRANET-FACILITATED KNOWLEDGE CREATION...22 Socialisation...23 Externalisation...24 Combination...24 Internalisation...24 DISCUSSION...25 CONCLUSION...25 ACKNOWLEDGEMENTS...26 REFERENCES...26 MAKE OR BUY - A TAXONOMY OF INTRANET IMPLEMENTATION STRATEGIES...29 ABSTRACT...29 INTRODUCTION...29 BACKGROUND THEORY...30 Definition of intranet technology...31 Characteristics of intranet technology...31 RESEARCH METHODS...32 CHOOSING AN IMPLEMENTATION STRATEGY...33 Implementation process: In-house or outsourced...33 Intranet architecture: Tailor-made or ready-made...34 A taxonomy of four types of intranets...35 THE FOUR INTRANET IMPLEMENTATION STRATEGIES...36 Type I - Homemade intranet (a.k.a. The Amateur)...36 Type II - Tailor-made intranet implemented by consultants (a.k.a. The Craftsman)...37 Type III - Intranet in-a-box customized by in-house personnel (a.k.a. The Engineer)...38

5 6 Organizing for Networked Information Technologies Type IV - Intranet in-a-box customized by outside contractor (a.k.a. Traveling Fitter)...39 DISCUSSION AND RECOMMENDATIONS...40 Discussion of results...40 Recommendations...41 CONCLUSION...41 Acknowledgements...42 REFERENCES...42 EVALUATION OF ERP IMPLEMENTATION: A MULTI-PERSPECTIVE APPROACH...45 ABSTRACT...45 KEYWORDS...45 INTRODUCTION...46 Background Methodology...46 ENABLING PROCESS ORIENTATION THROUGH ERP SYSTEMS...47 Industrial Challenges...47 The transformation of the enterprise...47 The role of ERP in transforming the enterprise...48 A NEW PERSPECTIVE ON ERP-IMPLEMENTATION SUCCESS...48 Implementation success...49 A framework for evaluating ERP implementation...50 ALPHA - ORGANIZING FOR AGILITY?...51 Background ERP implementation...51 The technological perspective...52 The business perspective...53 The organizational perspective...54 DISCUSSION...55 CONCLUSION...56 REFERENCES...56 MANAGING THE ERP JOURNEY...58 ABSTRACT...58 INTRODUCTION...58 RESEARCH METHODOLOGY...59 THE ERP IMPLEMENTATION JOURNEY...60 MANAGEMENT COMPETENCIES FOR ERP IMPLEMENTATIONS...62 THE ERP JOURNEY AT OMEGA...64 Project Chartering...65 The Project...67 Shakedown...68 Onward and upward...69 Discussion...69 COMPETENCIES FOR ERP MANAGERS...71 CONCLUSIONS...73 ACKNOWLEDGEMENT...74 REFERENCES...74 RIGHT SPEED IN NETWORK-BASED PRODUCT DEVELOPMENT AND

6 Organizing for Networked Information Technologies 7 ITS RELATIONSHIP TO LEARNING, CONTINUOUS IMPROVEMENT (CIM), AND CONTINUOUS INNOVATION (CI)...76 ABSTRACT...76 INTRODUCTION...76 RESEARCH METHODOLOGY...77 EMPIRICAL ANALYSIS RESULTS AND FINDINGS...78 UNDERSTANDING "THE FIELD OF NETWORK-BASED HIGH SPEED PRODUCT DEVELOPMENT"...79 RIGHT TIME IN PRODUCT DEVELOPMENT - THEORETICAL BACKGROUND...85 RIGHT SPEED IN NETWORK-BASED PRODUCT DEVELOPMENT...86 PRODUCT DEVELOPMENT LEADERSHIP (PDL) AND PRODUCT DEVELOPMENT MANAGEMENT (PDM)...87 SHORT TERM AND LONG TERM SUCCESS CRITERIA OF PDL...89 CONTRIBUTION TO THEORY...90 CONCLUSIONS AND FUTURE DEVELOPMENTS...90 ACKNOWLEDGEMENT...91 REFERENCES...91 A SCANDINAVIAN APPROACH TO INTERNET PORTALS: GENESIS, ADOLESCENCE AND MATURATION...93 ABSTRACT...93 INTRODUCTION...94 PORTALS AND THEIR MANAGEMENT...94 Portal lifecycle and business model...95 FIELD STUDY...96 Field study design...96 Data collection and analysis...97 ANALYSIS...97 Netdoktor.dk - a Danish health portal...98 Netdoktor.se - a Swedish health portal...98 Verkkoklinikka - a Finnish health portal...99 Jippii - a Finnish based mobile service portal Telia Mobile/MyDoF - a Swedish mobile service portal Mobilstationen - a Danish mobile service portal DISCUSSION AND CONCLUSION ACKNOWLEDGEMENT REFERENCES APPENDIX A - INTERVIEW GUIDE ERP II - NEXT-GENERATION EXTENDED ENTERPRISE RESOURCE PLANNING ABSTRACT INTRODUCTION THE EVOLUTION OF ENTERPRISE SYSTEMS LOGISTICS AND SUPPLY CHAIN MANAGEMENT THE EXTENDED ENTERPRISE AND BEYOND DISCUSSION CONCLUSION REFERENCES AN INTRODUCTION TO EXPORT ASSISTANCE IN THE INTERNET AGE

7 8 Organizing for Networked Information Technologies INTRODUCTION METHODOLOGY STRUCTURE OF THE PAPER SUMMARY OF OUR WEB SITES REVIEW CONCEPTUALIZING INTERNET BASED EXPORT ASSISTANCE IMPLICATIONS OF INTERNET BASED EXPORT ASSISTANCE FOR PRACTICE.126 Export Assistance Targeting Increasing Assistance Program Awareness Facilitating Market Intelligence Sharing From an Expense Oriented Activity towards a Profit-Oriented Activity! IMPLICATIONS OF INTERNET BASED EXPORT ASSISTANCE FOR THE RESEARCH COMMUNITY CONCLUSION REFERENCES INTERNET SITES A TYPOLOGY OF SUPPLIER-INVOLVED INTERFACES BETWEEN NEW PRODUCT DEVELOPMENT AND PRODUCTION ABSTRACT INTRODUCTION Differences between NPD and Production A STRUCTURAL VIEW ON PRODUCT INNOVATION A TYPOLOGY OF RELATIONSHIPS Lead partner type 1: Lead partner has NPD and production Lead partner type 2: Lead partner only has production and no NPD Lead partner type 3: Lead partner only has NPD and no production Lead partner type 4: Lead partner has no NPD and no production CASE COMPANY BETA Critical roles DISCUSSION CONCLUSION REFERENCES INTER-ORGANIZATIONAL PROJECT MANAGEMENT ABSTRACT INTRODUCTION PROJECT AND PROJECT MANAGEMENT MANAGING CONFLICT CASES Case one Case two Case DISCUSSION OF CONFLICT THEORY AND INTER-ORGANIZATIONAL PROJECT MANAGEMENT CONCLUSION REFERENCES...158

8 Introduction This book comprises a number of research articles that share the common topic of how companies' implement new networked IT to transform their internal and external business processes. It is the hope that the reader of the articles will gain an overview of some of the challenges and pitfalls that face modern organizations when putting various types of advanced IT to use. The idea is to share some of the practical challenges that companies face but cast in a traditional research article manner. The audience for this book are researchers and graduate students that wish to understand, reflect upon, and learn about the implementation of new networked information technologies. The casebook is an output from the interdisciplinary research project called PITNIT. The PITNIT project was supported by the Danish Research Agency under grant number The articles document a co-operative effort to research the merger and interplay between novel industrial and marketing concepts, and new complex, standard-based and networked technologies. The goal of PITNIT was to describe, analyze and offer practical guidelines for the integration and transformation of industrial processes enabled by networked IT innovation. The project integrated researchers from production engineering, social sciences and computer science departments from Aalborg University and from the department of economics at Aarhus University (see table 1 for an overview of researchers in PITNIT). In addition many national and international researchers visited the PITNIT project. Table 2 lists the principal visitors.

9 10 Organizing for Networked Information Technologies Table 1: Researchers in PITNIT ( ) Jan Damsgaard Associate Dept. of Computer Science Aalborg University Project manager Professor Poul H. K. Hansen Associate Dept. of Production Aalborg University Professor Jens Hørlück Associate Dept. of Management Aarhus University Professor Charles Møller Associate Dept. of Production Aalborg University Professor Pernille Kræmmergaard Assistant Dept. of Production Aalborg University Jensen Professor Morten Rask Assistant Dept. of International Business Aalborg University Professor Studies Jeremy Rose Associate Dept. of Computer Science Aalborg University Professor Jan Karlsbjerg* Ph.D. Dept. of Computer Science Aalborg University student Peter Lindgren* Ph.D. Dept. of Production Aalborg University student Somasundaram Ph.D. Dept. of Computer Science Aalborg university Ramanathan* student Table 2: PITNIT Visitors ( ) Ellen Christiaanse Associate Department of University of Professor Accountancy and Amsterdam Netherlands Information Management Jan Kristensen Ph.D. Dept. of Information The Aarhus student Science School of Denmark Business Kalle Lyytinen Professor Department of Information Case Western Systems Reserve USA University Ojelanki K. Professor Dept. of Information Virginia Ngwenyama Systems Commonwealth USA University Knut Rolland Ph.D. Dept. of Information University of Oslo Norway Student Systems Rens Scheepers Senior School of Information Swinburne Lecturer Technology University of Australia Technology Duane P. Truex Assistant Computer Information Georgia State USA Professor Systems Department University Detlev Zwick Ph.D. Dept. of Marketing University of USA Student Rhode Island * Ph.D. scholarship financed by the PITNIT project * Ph.D. scholarship 50 per cent financed by the PITNIT project. Peter has completed his Ph.D. (2003) * Ph.D. scholarship financed by the PITNIT project

10 Organizing for Networked Information Technologies 11 Background for the research project The background of the PITNIT project was our observation that established industrial structure was besieged by new networked IT innovations that challenged the status quo and forced a total rethinking of the traditional industrial value chain. As a consequence, the conception of a single organization was, and still is shifting towards a united and highly interrelated value network consisting of suppliers, production units, and customers and consumers. This network of semi-autonomous business units together comprises a complex network of integrated business processes that is constantly reconfiguring itself in response to changes in the market and in the technology or in the management thereof. Figure 1: The world according to PITNIT Instrumental in this transition is the pervasive emergence of complex, standardbased, and networked technologies. Examples of such technologies are the Internet, Intranet, Extranet, Electronic Data Interchange (EDI), and Enterprise Resource Planning (ERP) systems. Each of these offers new possibilities for extensive business process reengineering of the enterprise, but also posses a significant threat if left unattended. In recent years many researchers have concentrated on understanding these IT innovations individually, and with good reason since they are innovative and different from traditional IT innovations. However the technologies are networked and therefore interconnect previously separated business processes. Consequently there is a natural and urgent need to integrate previously segregated research activities into a more holistic view of complex, standard based, and network technologies and their impact on the totality of industrial processes both inside and outside of the company.

11 12 Organizing for Networked Information Technologies The articles We have selected 10 articles from the PITNIT related production. They can be grouped into three, partly overlapping groups, covering different topics within the framework of PITNIT. Except for one, all articles have been published - or are about to be published - elsewhere. Group A: Articles primarily related to one organization's perspective on parts of the framework 1. Damsgaard, J. and R. Scheepers (2001). " Knowledge Creation on the Intranet." Australian Journal of Information Systems, 9(Special Issue on Knowledge Management, December). Organisations implement intranets with the intent of harnessing the technology to support knowledge management. The article defines a model, rooted in Nonaka and Konno's well-known framework of knowledge creation, combined with a taxonomy of five intranet use modes. For each of Nonaka's knowledge creating activities a corresponding primary intranet use mode can foster that particular knowledge creation process. It is illustrated by empirical intranet field studies in Denmark and South Africa. 2. Karlsbjerg, J. and J. Damsgaard (2001). Make or buy - A taxonomy of intranet implementation strategies. The 9th European Conference on Information Systems, "Global Co-operation in the New Millennium", Bled, Slovenia. This speculative paper is initiated by the fundamental question "how should intranets be implemented?" The discussion uses a framework describing four different intranet implementation strategies based on who implement the intranet (in-house vs. outsourced project) and the technology used (development tools or shrink-wrapped intranet packages). Each of the four strategies has advantages as well as disadvantages. The empirical analysis suggests that the appropriate strategy must be chosen in accordance with the level of internal technical expertise, core competence, and maturity of the technology. 3. Kraemmergaard, P. and C. Møller (2002). "Evaluation of ERP implementation: A multi-perspective approach." Journal of Enterprise Resource Management 4(4). ERP-implementation is a critical activity for industrial enterprises. We have seen many disastrous implementation projects leaving companies with delivery problems and frustrated employees. This is one of the reasons why the management of ERP-implementation is a significant challenge to both practice and academia. The article argues that a multi-perspective framework for studying ERP-implementation must be used, including the different stakeholders and using at least three different perspectives from which an implementation can be evaluated: organizational, business and technological. 4. Kræmmergaard, P. and J. Rose (2002). "Managing the ERP Journey." Information Systems Frontiers 4(2). In many cases ERP implementations are late, over budget or fail to meet the desired business outcomes. The list of factors influencing implementation is long and mostly relate to the technical implementation - until the system goes live. After that it is an ongoing journey where new functionality, modules, updates,